Characteristics: Situational capital need for working capital/liquidity, growth capital, acquisition financing, and/or special situations.
Revenue: $20 – $100+ million
Proforma EBITDA: $1 – $5+ million
Underwriting: Focus on proforma free cash flow / liquidity for debt service and other assets / enterprise value as secondary source of repayment.
Structure: Second lien / split lien, senior secured, bifurcated.
Characteristics: Emerging growth technology companies seeking non dilutive capital.
Revenue: $3 – $10+ million recurring revenue
EBITDA: Clear path to profitability or sufficient liquidity reserves.
Underwriting: Focus on recurring revenue, liquidity, and enterprise value.
Structure: Second lien / split lien, senior secured, or bifurcated. We will often start senior secured and transition to second lien as the company grows and can obtain traditional bank financing.
Characteristics: Asset rich, cash poor entrepreneur in need of short term liquidity or a bridge loan, sensitive to dilution, speed to close required.
Underwriting: Sufficient net worth, dedicated collateral, and/or future liquidity event to support SGCP’s loan.
Structure: Flexible security positions around financing situation, cash flow, and available collateral.
Headquartered in Southern California, with offices in Portland, Boston and Atlanta, the SG Credit Partners team has provided in excess of $250 million to 150+ borrowers across a variety of industries.